Sri Lanka set for rapid growth in 2010-11

Data released today showed that Sri Lanka’s economy expanded at a faster pace in Q2 than in Q1. Domestic demand should hold strong and offset the fading support from exports. The central bank (CBSL) policy rates look set to stay on hold for a long time but overheating fears are likely to climb during the course of 2011. The next move in policy rates will probably be up rather than down.

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